Let Detroit Go Chapture 11

I shouldn't be, but I am amazed by how swiftly my federal government has put trillions of taxpayer dollars at stake covering up for their lack of oversight of reckless financial dealings.

Now on top of that, American auto makers are going hat in hand so to squander 25 billion dollars of my tax money.

This is just so wrong.

The 25 billion dollars would only prolong the agonizing death of the American auto industry.

A total restructure is needed.

Let Detroit Go Bankrupt
By MITT ROMNEY

IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.

Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check.

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, , ,their huge disadvantage in costs relative to foreign brands must be eliminated.

That means new labor agreements to align pay and benefits to match those of workers at competitors like BMW, Honda, Nissan and Toyota. Furthermore, retiree benefits must be reduced so that the total burden per auto for domestic makers is not higher than that of foreign producers.

That extra burden is estimated to be more than $2,000 per car.

Think what that means: Ford, for example, needs to cut $2,000 worth of features and quality out of its Taurus to compete with Toyota’s Avalon. Of course the Avalon feels like a better product — it has $2,000 more put into it. Considering this disadvantage, Detroit has done a remarkable job of designing and engineering its cars. But if this cost penalty persists, any bailout will only delay the inevitable.

Ditch the Union Goons